- Says investors not to be asked about source of income
- Announces tax incentives for construction industry
ISLAMABAD, April 3: Prime Minister Imran Khan Friday announced a hefty package for the construction industry, including tax incentives, waivers and subsidies in the areas of sales tax, capital gain tax and withholding tax, in order to increase employment opportunities in the country in the wake of coronavirus outbreak.
The Prime Minister also announced the opening of construction sector from April 14 to help the country’s daily wagers and laborers, affected by continued lockdown due to COVID-19 outbreak, to earn their livelihoods.
Announcing the package, the Prime Minister said those who invest in the sector during this fiscal year 2020-21 will not be asked questions about their source of income.
Secondly, the Prime Minister said, the government has also decided to bring the construction sector in the fixed-tax regime under which the rate of tax on land would be levied on the basis of per square yard and per foot.
He, however, added that those investing in the Prime Minister’s housing programme would be given 90% tax rebate and they would be required to pay just 10% of the total calculated tax amount on their projects.
The Prime Minister said that it has also been decided to waive-off withholding tax in cement and steel sectors.
Besides, he said, that in coordination with the provincial governments of Punjab, Khyber Pakhtunkhwa and Sindh, it has also been decided to bring the sales tax in construction sector to 2% through consolidation of all taxes. The Prime Minister further said that capital gain tax on the sale of house is also being done away with.
He also announced Rs 30 billion subsidy for Naya Pakistan Housing Programme, adding further subsidy would be given on its progress.
The Prime Minister said the government has also decided to give construction sector the status of industry. It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote the construction industry in the country, he added.
Talking to media persons on the occasion, the Prime Minister said the government’s decision taken in coordination with the provinces, is also aimed at reviving economic activities in the country, badly hit by the situation arising out of the Coronavirus outbreak.
The Prime Minister said all the decisions regarding the COVID-19 are being taken in coordination with the provinces. However, he added, any of the provinces could make changes as per their requirements.
He said since the Rs 1200 billion’s stimulus package announced by the federal government to provide financial relief to the poor and daily-wagers in the wake of lockdown due to Coronavirus outbreak, the government had decided to open the construction sector.
The Prime Minister said with the agriculture sector, which is already open, providing jobs to people in villages, the opening of construction sector, the main source of employment in urban areas, was very much needed. -TLTP
